We have shared 10 areas that e-commerce site owners should take a look at to reduce their business costs. Taking it into consideration will help you improve costs.
The general rule of business is to control expenses, increase revenue and maximize profits. Achieving this is very difficult when the economy is weak and you are trying to improve the economy. As revenues rise, businesses seek to have more employees, purchase new technologies, and expand equipment. However, many companies divide the amount of cash they have into fixed assets and try to make equipment investments by expanding sales.
The easiest way out of this situation is to reduce and control non-strategic costs. Thanks to the emergence of technology and external resources, companies are able to reduce costs, improve efficiency and increase profits to be better positioned against the inevitable periodic crisis.
E-Commerce:10 best Areas
If you want to be one of these companies, you should take a look at the 10 different topics listed below and reduce your company’s costs.
1. Production
Economic balances are constantly changing. There are two countries that stand out here. China and the United States can change the economic balances. However, if you determine your production area within your own country, you can limit the cost and you will not have to deal with the problems of operations in different time zones, different cultures, transportation and equipment investments.
2. Shipping and Packaging
Try to reduce the cost of shipping and packaging. While doing this, try to take advantage of the competition between companies. Try to get as much efficiency out of each transport vehicle as possible. Try to reduce the shipping cost that customers have to pay, but if more shipping costs need to be paid, indicate this to the customer and obtain the fee from the customer.
3. Finance and Accounting
Solve the problem of accounting outsourcing by simplifying and making cost reduction easy and achievable. If your employees include accountants, this can be a positive.
4. Human Resources
A professional labor agency can help you with payroll and offer more beneficial benefits to workers. In addition, you can significantly reduce the cost of earnings in E-Commerce if you create a common pool with other companies thanks to the professional labor agency. However, you may have someone who can take responsibility for regulatory changes in human resources.
5. Legal Fees
If you deal with things like litigation, patent work, or partnership organizations, you need a legal expert. This expert may be from a top law firm and their hourly rates are significant. Legal fees are negotiable and many law firms are willing to reduce these fees or reduce them to a basic legal service on a monthly basis.
6. Bank Fees
If you are a small or medium-sized business working with a national clearing bank, question why. These major banks are full of professionals who can assist large firms with complex international transactions. However, these services may be necessary for your company that is experiencing sudden growth. In fact, these fees can be twice as high as the fees of local or regional banks.
7. Insurance
When was the last time you received a quote from an alternative insurance broker? Insurance companies often allow one commission registration at a time. If you currently have one broker and an offer from a different broker is available, you must choose which broker should receive quotes from insurance companies. Insurance brokers naturally build strong relationships with insurance companies. Therefore, choosing the one that brings the extra discount is the ideal choice in E-Commerce.
Submit your insurance needs as a quote to two brokers and insurance companies. Consider high deductibles and low coverage limits if high limits are not needed.
8. Audit Fees
The four major audit bureaus are equivalent to a large national clearing bank. These audit offices are established with research and power groups. They try to cope with challenges at home and abroad and have high levels of wages.
Wage levels can be examined in four groups. The four largest offices, the other three national offices, regional offices, and local certified public accountants. Make sure these accountants are a good fit for your firm. There can be large differences in wages between large and small offices.
9. Social Marketing in E-Commerce
Your social media networks and LinkedIn page are very useful channels for the company’s marketing activities. Review your marketing costs and think about what you can replace them with. Advertising budgets, fair investments and investments in general event areas are activities that need to be cut or eliminated.
10. Selling to the Right Customer
When you research your customer base, you can see which customers will bring more profit, which ones are a little closer to this scope, and which stand out as outright losses. Customers who are seen as lost are the customers you want to convert. Smart companies, on the other hand, direct all sales towards customers who bring more profit. Even if you reduce the cost of sales in E-Commerce and even use resources to generate more profitable sales, you will still generate more cash and increase the company’s profits.
